State Development Office was established since October 14th 1969. Initially it was one of the Ministry of National and Rural Development (MNRD) agencies. The launching of MNRD in 1970, brought the formation of Implementation Coordination Unit (ICU) whereby the State Development Office (SDO) reports to this unit.
In 1972, a new unit known as ICDAU was formed as a result of merger between ICEU and DAU, it was later known as Unit Penyelarasan Pelaksanaan (UPP) when administration matters transformed to Jabatan Perkhidmatan Awam ( JPA), both in JPM. The government in accordance of 1971 New Economic Policy (Dasar Ekonomi Baru-DEB), established the Majlis Tindakan Negara (MTN) at federal level. The two-pronged strategy was to eradicate poverty and society restructuring. The MTN’s main role was to coordinate and ensure planned program in development project implemented in accordance of Directive No. 1, 1971.
The National Development Policy (NDP) was launched in 1991, replacing NEP. Directive No. 1, 1991, The Machinery of Implementation and Coordination of NDP was issued by the Prime Minister to replace the Directive No. 1, 1971. The main objective was to set up implementation coordination such that observation and supervision machinery under NDP after 1991 can be achieved. The Directive was once again amended in 1996 with the issuance of Directive No. 1, 1996, which explained the mechanism of NDP Implementation Machinery.
The supervision of national development plans were continued with the use of more sophisticated computer systems at National Operation Room (NOR). ‘War Operation Room’ is the concept that has been carried out to continue with the objectives of NEP through NDP which is to eradicate poverty and to restructure the society. ICU continued to play the role given by the government to accomplish that task. The main task of ICU was to ensure that the delivery system of policy, programs and projects were carried out effectively so that the public can enjoy the benefits in order to achieve the objectives of national development.
On June 1st 1999, ICU moved to the Prime Minister’s Office Complex in Putrajaya, the new Federal Government Administration Centre. ICU was among the first government departments to move to Putrajaya. The move was seen as a new approach to the implementation of Electronic Government (E-Gov) and hence will become a catalyst to the success of Multimedia Super Corridor (MSC) project.
On November 2009, the name of State Development Office was change to Federal Development Office.